Say Buh-bye to High Interest Rates
When high interest rates are added to your already costly loan payments, your debt can go from attainable to unaffordable fast.
Some Student Loan Interest is Inevitable
Interest rates on loans are like your Aunt Milly at Thanksgiving – they’re typically unavoidable, especially if you have a federal loan. However, there’s no cookie-cutter rate for student loan borrowers. Your interest percentage will depend on the following criteria:
- Federal vs. private loan
- Undergraduate or graduate
- Subsidized or unsubsidized
- When you received the loan
Abolish Outrageous Interest Rates with an Accelerated Payment Plan
You can get a lower rate if you’re able to pay off your loan faster. *If* you’re able to pay more monthly.
Your monthly overall payment will be higher because of the shorter timeframe, but the change will save you in the long run. In short: the less time in the loan period, the lower the interest
Federal vs. Private Loan Rates
Federal interest rates are set by the government vary by loan type, whereas private loan interest rates are based on factors such as:
- Credit history
- Credit score
- Borrowing power
- Payment length
Federal loans can have double to triple the interest of a private lender, depending on your situation. Thanks, government. A potential solution for a high federal rate is to follow this three-step process:
This plan is ideal if you can stick to the payment schedule. The downside is you will lose any income-based repayment options or forbearance offered by the federal government. Money Solver can review your current loan status and life circumstances to see if restructuring your loan for a lower interest rate is the right path for you. We’ll review what other options are available to you, so you can pay off student debt in the most efficient and affordable way possible.
You’ll be saying sayonara to those extra percentages – and we promise they won’t be missed.